Electric Vehicle Market: Price Constraints Ease as High-End Models Maintain Value Stability
On March 24, China Automobile Dealers Association released its February 2025 China Automobile Value Retention Report (referred to as the Report hereafter). The Report indicates that in February, the number of used cars in circulation reached 6.238 million units, representing a significant increase compared to the same period last year, with 5.069 million units in 2024.
Additionally, the Production and Marketing Department announced revisions to the Light Vehicle Emission Limit and Measurement Method (China Phase I), indicating a focus on the “mandatory emission standards for light vehicles and heavy-duty vehicles.” The China Automobile Dealers Association has collaborated with various industry experts to analyze the data shared in the China Automobile Value Report, stating that the “national standard” release remains unchanged, while some enterprises have accelerated their product upgrades to enhance the value retention of used cars.
According to the Report, the demand for high-end electric vehicles remains robust, leading to a notable increase in the value retention rate for mid to large SUVs, which is currently at 59%, 55.8%, and 55.4% respectively. In contrast, smaller SUVs and compact cars have lower retention rates, averaging below 51%, with compact cars achieving the lowest at 48.8%.
In the current market, demand for high-end electric vehicles continues to be significant, resulting in an upward trend in the value retention rate of mid to large SUVs. The Report indicates that the value retention for low-end models has declined, contributing to a stabilization of the market.
Furthermore, the value retention for new energy vehicles remains stable, with hybrids and pure electric vehicles showing retention rates of 47% and 45.2%, respectively. The hybrids, in particular, are maintaining a stable value retention rate, primarily due to their high-end models.
The China Automobile Dealers Association has noted that despite fluctuations in the market, the value retention for new energy vehicles has been consistent. It is expected that as the industry evolves, electric vehicles will increasingly dominate the market due to their growing popularity.
On February 25, the Ministry of Finance and the Ministry of Transport jointly released a notice regarding the 2025 electric vehicle subsidy trial, confirming that 75 trial points will support the development of electric vehicle infrastructure this year.
Industry experts believe that the gradual transition towards electric vehicles will further stimulate the market, particularly as the demand for high-end models continues to grow.
